New York (NY) Car Sales Tax & Fees [+ Calculator]
One of the most important aspects of dealing with a vehicle purchase is knowing the associated taxes. That includes the state sales tax that is required in your state. New York charges 4% at the state level, but every county and city adds its own local tax on top, so the rate you actually pay runs from 7% to 8.875% depending on where you register the car.
Here, we’ll look at the tax rate for new and used vehicles within the Empire state.
How Much Will I Have to Pay in Car Sales Tax in NY Video
How Much Is the Car Sales Tax in New York?
New York’s state car sales tax is 4% of the purchase price. That is only part of the bill. Every county, and a few cities, add a local tax on top, and the DMV charges you at the rate for the address where you register the vehicle, not where the dealership sits.
Combined, that puts the real rate between 7% and 8.875%. Saratoga, Warren and Washington counties are the cheapest in the state at 7%. New York City and Yonkers are the most expensive at 8.875%.
For instance, if you pay $40,000 for a new vehicle, the state sales tax will be $1,600. Note that this state sales tax does not include any county or city tax that may be applied on top of the state sales tax.
How to Calculate New York Sales Tax on a Car
You can calculate the state sales tax on a vehicle purchase by first taking the vehicle’s purchase price and then deducting any trade-ins.
This will be a portion of your out-the-door costs. From there, multiply that figure by your combined state and local rate, which is 4% plus whatever your county charges.
Calculate Car Sales Tax in New York Example:
- Let’s say you purchase a new vehicle for $50,000.
- Your trade-in vehicle is worth $7,500 and you get a $2,500 rebate.
- That puts your out-of-pocket cost at $40,000.
- However, in New York, the taxable amount is $42,500 (rebate is taxed)
- Now multiply $42,500 by 4%.
- That gives you $1,700 in state tax.
- Then add your local rate. In Warren County (3%) that is another $1,275, for $2,975 total. In New York City (4.875%) it is another $2,072, for $3,772 total.
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Do I Have to Pay Sales Tax on a Used Car?
Yes, and at the same combined rate as a new car. Age and mileage make no difference. What you pay is set by where you register it, so between 7% and 8.875%.
Which City or County Has the Highest Tax? Which Has the Lowest?
New York City has the highest city sales tax in New York, with a tax rate of 8.875%. That is an additional 4.875% in city tax on top of the statewide 4%.
Yonkers matches New York City at 8.875%. Erie, Oneida and Suffolk counties are next at 8.75% combined, which is a 4.75% local rate on top of the state’s 4%.
The lowest combined rate in the state is 7%, charged in Saratoga, Warren and Washington counties. On a $40,000 car, registering in Warren County instead of New York City is a difference of $750.
New York Car Sales Tax by County
The rate below is the one the DMV charges you, based on the address where you register the car. The last column is what the tax comes to on a $40,000 vehicle, after any trade-in is deducted.
| County | Combined tax rate | Tax on a $40,000 car |
|---|---|---|
| Albany | 8% | $3,200 |
| Allegany | 8.5% | $3,400 |
| Bronx | 8.875% | $3,550 |
| Broome | 8% | $3,200 |
| Cattaraugus | 8% | $3,200 |
| Cayuga | 8% | $3,200 |
| Chautauqua | 8% | $3,200 |
| Chemung | 8% | $3,200 |
| Chenango | 8% | $3,200 |
| Clinton | 8% | $3,200 |
| Columbia | 8% | $3,200 |
| Cortland | 8% | $3,200 |
| Delaware | 8% | $3,200 |
| Dutchess | 8.125% | $3,250 |
| Erie | 8.75% | $3,500 |
| Essex | 8% | $3,200 |
| Franklin | 8% | $3,200 |
| Fulton | 8% | $3,200 |
| Genesee | 8% | $3,200 |
| Greene | 8% | $3,200 |
| Hamilton | 8% | $3,200 |
| Herkimer | 8.25% | $3,300 |
| Jefferson | 8% | $3,200 |
| Kings (Brooklyn) | 8.875% | $3,550 |
| Lewis | 8% | $3,200 |
| Livingston | 8% | $3,200 |
| Madison | 8% | $3,200 |
| Monroe | 8% | $3,200 |
| Montgomery | 8% | $3,200 |
| Nassau | 8.625% | $3,450 |
| New York (Manhattan) | 8.875% | $3,550 |
| Niagara | 8% | $3,200 |
| Oneida | 8.75% | $3,500 |
| Onondaga | 8% | $3,200 |
| Ontario | 7.5% | $3,000 |
| Orange | 8.125% | $3,250 |
| Orleans | 8% | $3,200 |
| Oswego | 8% | $3,200 |
| Otsego | 8% | $3,200 |
| Putnam | 8.375% | $3,350 |
| Queens | 8.875% | $3,550 |
| Rensselaer | 8% | $3,200 |
| Richmond (Staten Island) | 8.875% | $3,550 |
| Rockland | 8.375% | $3,350 |
| St. Lawrence | 8% | $3,200 |
| Saratoga | 7% | $2,800 |
| Schenectady | 8% | $3,200 |
| Schoharie | 8% | $3,200 |
| Schuyler | 8% | $3,200 |
| Seneca | 8% | $3,200 |
| Steuben | 8% | $3,200 |
| Suffolk | 8.75% | $3,500 |
| Sullivan | 8% | $3,200 |
| Tioga | 8% | $3,200 |
| Tompkins | 8% | $3,200 |
| Ulster | 8% | $3,200 |
| Warren | 7% | $2,800 |
| Washington | 7% | $2,800 |
| Wayne | 8% | $3,200 |
| Westchester | 8.375% | $3,350 |
| Wyoming | 8% | $3,200 |
| Yates | 8% | $3,200 |
Car Sales Tax for Trade-Ins in New York
The value of your trade-in is not subject to state sales tax. Therefore, you can lower your overall tax burden if you include a trade as part of the sale of your vehicle.
For instance, let’s say that you purchase a new vehicle for $50,000, and you get a $10,000 trade-in credit. Then you are taxed on $40,000, not the full $50,000.
Car Sales Tax for Private Sales in New York
Private sales are taxed at the same combined rate as dealer sales. The difference is that no dealer collects it for you: you and the seller complete form DTF-802, and the DMV calculates and collects the tax when you register the car.
The rate the DMV uses is the one for your own address, so two buyers of the same car can owe different amounts.
Tax on Rebates & Dealer Incentives
In New York, a manufacturer rebate does not lower your tax. The state taxes the price before the rebate comes off, because the manufacturer reimburses the dealer for it, so the dealer still receives the full amount.
A discount the dealer funds itself is different. If the dealer knocks money off and nobody pays them back for it, that genuinely reduces the taxable price.
Let’s say that you purchase a vehicle for $50,000 and get a $2,500 rebate after your purchase. That $2,500 is still taxed, so the taxable amount stays $50,000.
Other Taxes & Fees for New York
Here’s a look at other taxes and fees that you will have to pay whether you are purchasing a new or used vehicle in the state of New York.
DMV/State Fees
Whether you are purchasing the vehicle from a dealership or a private party, you will have to pay DMV/state fees. In the state of New York, the DMV/state fees are the following:
- Registration: $26.00 to $140.00, charged by vehicle weight and covering two years. A vehicle with six or more cylinders, or an EV, has a $32.50 minimum.
- Title Fee: $50.00
- Plate Fee: $25.00 for new plates. If you transfer plates from your old vehicle, you skip this and the MCTD fee.
You may also owe the MCTD fee, the Metropolitan Commuter Transportation District fee, which is $50 for the two-year registration period ($25 a year). It applies if you live in one of these 12 counties:
- Bronx
- Kings (Brooklyn)
- New York (Manhattan)
- Queens
- Richmond (Staten Island)
- Dutchess
- Nassau
- Orange
- Putnam
- Rockland
- Suffolk
- Westchester
Note that if you are transferring your plates and registration from another vehicle, then you do not have to pay the MCTD fee. This fee only applies to vehicles that you have not previously registered.
Dealership Fees
When you purchase a vehicle at a dealership, the dealership will handle the documentation work on your behalf. New York caps the dealer “Doc Fee” at $175 under 15 NYCRR §78.19, and has since August 18, 2021. Most dealers charge the full $175. Anything above that is not legal, so check the number on your buyer’s order. The cap is a ceiling, not a fixed price, so you can still negotiate it downward.
However, you have to be aware that dealerships may charge their own “in-house” fees on top of this. Additional fees include advertising fees and destination fees.
Most dealers treat the doc fee as fixed, but the advertising and delivery add-ons are where you have room to push back.
When Sales Tax is Exempt in New York
There are several exemptions available that will allow you to avoid paying state sales tax:
- If the vehicle is a gift from a family member
- If you paid out-of-state sales tax
- If you were not a resident of New York when the vehicle was purchased
- If you are a member of the U.S. Armed Forces and you are not a resident of the state of New York
- If the vehicle is transferred between spouses, or to a child, parent or sibling
- Leasing is not on this list. New York treats a lease of a year or more as taxable in full at signing: the tax is calculated on every payment for the whole term and collected upfront, not month by month
New York EV Rebates & Incentives
New York’s Drive Clean Rebate covers more than 60 new plug-in hybrid and all-electric models, but the amount is tiered rather than flat. It runs from $500 to $2,000, set by the model’s MSRP and its all-electric range, so only longer-range cars under the price threshold reach the full $2,000.
The useful part is how you get it. The dealer takes the rebate straight off the sale price at the point of sale, so it is an upfront discount rather than something you claim back later. You have to buy or lease through a participating dealership for that to work.
Check out the New York EV tax and utility incentives here.
Tax information and rates are subject to change, please be sure to verify with your local DMV.
